1. Chapter 12 Wholesale Marketing and Distribution

2. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 International Markets International wholesale apparel and accessory markets are the means of distributing the manufacturer’s finished product to retailers. Traditionally, fashion markets were located close to suppliers and manufacturers. Globalization made local market centers, or places with abundant convention space, new fashion markets. Paris remains the world center for couture.

3. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 International Markets Twice annual shows are highly regulated by the French government which in turn gives extensive support in the form of campaigns to promote export and free media coverage. Prêt a porter also garners extensive coverage in Paris, as well as Milan and throughout the German market fairs. Many designer collections now combine women’s and men’s.

4. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Domestic Markets New York remains the domestic capital, with two shows annually in addition to trade show during market weeks. While children’s wear now has three or four shows a year, men’s wears, National Association of Men’s Sportswear Buyers (NAMSB), now shows four times a year. Showrooms are places where manufacturer’s reps show samples to prospective retail buyers.

5. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Domestic Markets The Men’s Apparel Group in California (MAGIC), has the largest men’s apparel trade show in the world, held twice a year in Las Vegas. Regional markets in the United States include: –Los Angeles –Dallas –Chicago –Atlanta –Miami

6. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Marketing Manufacturers use specific marketing strategies to make their merchandise known to prospective retail buyers and the public. Marketing strategies are adjusted to local habits, styles and tastes. Publicity is information given to the public regarding products, policies, personnel, activities or services. The goal is to obtain editorial coverage. While media coverage is free, manufacturers pay to create the publicity materials.

7. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Marketing Advertising is the planned writing, producing and scheduling of paid announcements designed to attract potential customer’s attention to the manufacturer’s merchandise. Manufacturers use trade and consumer media to reach both markets. Image advertising is aimed to make consumers aware of names or brands. Manufacturers may choose one outstanding style from a collection to create item advertising.

8. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Marketing Cooperative advertising is a joint venture between textile producers and retailers to share advertising cost. A variety of marketing aids for retailers are available: –Personal appearances by designers, designer trunk shows and in store clinics –Videos and image books –Display fixtures –Radio scripts and TV commercials –Glossy photos, statement enclosures and hangtags Associations that promote fashion also have annual fashion awards to generate interest in fashion.

9. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Distribution Manufacturers plan distribution to achieve four points: –Appropriate stores buy the merchandise –The desired geographical representation is achieved –Competition between stores is not created –Business volume is obtained Manufacturers strive to create brands consumers prefer over all others, consumer franchising. Brand integrity is supported by consistent quality and value, licensees kept to a minimum for purpose of control, appropriate advertising, fixturing.

10. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Distribution Building a brand requires: –Multiproduct manufacturing –Exporting –Opening retail stores Licensing provides diversification without capital investment. Licensing agreements allow manufacturers to use designers or brand names for a royalty fee.

11. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Distribution Joint ventures accomplish the same goals as licensing but are partnerships between manufacturer and designer. Franchising rights allow someone to retail a manufacturer’s line. Manufacturers sometimes lease space within a store to sell their merchandise, particularly when expertise is needed to sell as in the case of fine jewelry, shoes and fur.

12. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Selling to Retailers Manufacturers, or vendors, communicate design and merchandising concepts to retailers. Assortment customizing makes each separate account slightly different to give unique looks at each store. The two basic ways of selling fashion merchandise to retailers is through: –Corporate selling, where major vendors sell management team to management team –Sales representatives who call on specialty stores that don’t have time or money to travel to New York

13. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Selling to Retailers Retailers search for manufacturers who provide, at a minimum, the following: –Consistent quality –Continuity of styles –On time delivery –Value –Reorder performance EDI orders create Inventory Management Systems (IMS) reports on in stock and expected delivery dates. Manufacturers hire consultants to “train” retail sales associates on their merchandise features and benefits.

14. Fashion From Concept to Consumer, 8/e© 2005 Pearson Education, Inc. Gini Frings Upper Saddle River, New Jersey 07458 Selling to Retailers Traditional buy/sell relationships between retailers and manufacturers have been replaced. Today’s competitive market demands sharing of risk and information on forecasting, product development, production, scheduling and distribution.